Home/Guide/Beginner's Guides/Futures/Calculation of Futures Yield and Trading Fees

Calculation of Futures Yield and Trading Fees

2023.09.21 MEXC
Share
As a futures trader, your trading profits and losses (PNL) come from three aspects: trading fees, funding fees received or paid, and closing PNL. In this article, we will explain each of these aspects one by one.

1. Trading Fees


  • As a market liquidity taker, you need to pay a fee calculated as follows: Position Value x Taker Fee (0.02%).

  • As a market liquidity maker, you need to pay a fee calculated as follows: Position Value x Maker Fee (0.00%).

2. Funding Fees


  • Under normal circumstances, funding fees for perpetual futures on MEXC are settled every 8 hours. Depending on the funding rate's positivity or negativity and the direction of your position (long or short), you will either receive or pay funding fees. If you hold a long position and the funding rate is positive, you will need to pay funding fees. Conversely, if the funding rate is negative, you will receive funding fees (funding fees are transferred directly between users).

  • Funding Fee = Funding Rate * Position Value (Number of Cont. * Futures Size * Fair Price at the Time of Settlement).

3. PNL Calculation


3.1 Floating PNL (Unrealized PNL)


  • USDT-M Futures

For long positions: (Fair Price - Average Entry Price) * Position Quantity

For short positions: (Average Entry Price - Fair Price) * Position Quantity

  • Coin-M Futures

For long positions: (1 / Average Entry Price - 1 / Fair Price) * Position Quantity

For short positions: (1 / Fair Price - 1 / Average Entry Price) * Position Quantity

3.2 Closing PNL (Realized PNL)


  • USDT-M Futures

For long positions: (Close Price - Average Entry Price) * Position Quantity

For short positions: (Average Entry Price - Close Price) * Position Quantity

  • Coin-M Futures

For long positions: (1 / Average Entry Price - 1 / Close Price) * Position Quantity

For short positions: (1 / Close Price - 1 / Average Entry Price) * Position Quantity

Example

A MEXCer, acting as a taker, buys a 0.1 BTC long position in BTC/USDT futures at a price of 50,000 USDT. The user provides 500 USDT as margin and uses 10x leverage.

Taker Fee = 0.02%, Maker Fee = 0.00%, Funding Rate = -0.025%.

The user needs to pay a trading fee of 50,000 x 0.1 x 0.02% = 1 USDT.


The user can receive funding fees (since the funding rate is negative) of -50,000 * 0.1 * (-0.025%) = 1.25 USDT.


Suppose the user, when the BTC price is 60,000, acts as a maker to sell and close the 0.1 BTC futures position:


The closing PNL would be (60,000 - 50,000) * 0.1 = 1,000 USDT. The closing fee is 60,000 x 0.1 x 0.00% = 0 USDT.


So, the user's total realized PNL would be 1,000 - 1 + 1.25 - 0 = 1,000.25 USDT.

Additionally, you can access historical trading records to view the trading fees and funding rates charged for each trade, as well as the PNL of each order.

4. Conclusion


From the above content, you can understand the basic principles of calculating PNL in futures trading. We recommend trading rationally and continuously learning from your past trades.

Disclaimer: This information does not provide advice on investment, taxation, legal, financial, accounting, or any other related services, nor does it constitute advice to purchase, sell, or hold any assets. MEXC Learn provides information for reference purposes only and does not constitute investment advice. Please ensure you fully understand the risks involved and exercise caution when investing. The platform is not responsible for users' investment decisions.


Beginner Benefits

Sign up and easily get New User Rewards. There is up to 1,000 USDT Futures Bonus waiting for you.